MyEG confirms talks to buy Eat Drink KL

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KUALA LUMPUR (May 17): Electronic government services provider My E.G. Services Bhd (MyEG) has confirmed that it is in negotiation to acquire a stake in popular food review website Eat Drink KL.

In a filing with Bursa Malaysia today, the company said the negotiation between its board of directors and existing shareholders of Eat Drink KL is currently ongoing and has not been finalised.

"However, the board will release further announcements once an agreement has been entered with all relevant parties pursuant to the ongoing negotiation," it added.

This confirmed a report by The Edge Financial Daily today that said MyEG was close to sealing a deal to buy a controlling stake in Eat Drink KL.

The report said under the proposed deal, Eat Drink KL will likely be parked under MyEG's wholly-owned investment holding company MyEG Capital Sdn Bhd, which in turn holds a controlling stake in online advertisement firm MyEG Ad Networks Sdn Bhd, auto classified website Car X Services Sdn Bhd, diversified media solutions provider Picasso Media Sdn Bhd and online television provider Hurr TV Sdn Bhd.

Started since February 2009, Eat Drink KL is currently wholly-owned by Sean Yoong, a former journalist with a 14-year stint at Associated Press.

At the same time, Yoong is also writing for EatDrink, another food review website owned by media company The Expat Group via TEG Digital Sdn Bhd, which has been publishing The Expat magazine since 1996, providing information about Malaysia to the English-speaking audience.

MyEG saw its share price fall four sen or 1.74% to close at RM2.26 today, giving it a market capitalisation of RM8.22 billion. Year-to-date, the counter has appreciated by 46% from RM1.55 on Jan 3.